.•ADVANCE COPIES:.. FALKLAND I.SLANDS

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,PS/LORD TREFGARNEPS/PUSMR GIFFARDMR %RIGHTMR ADAMSMR UREMR GILLMORE

HD/SAmD (FCO- HD/DEF D

HD/NEWS DHD/UNDHD/PLANNING STAFFHD/HKGD

RESIDENT CLERK

Valid 8/4)

. PS No,0 DOWNING ST.

pS/CHANCELLORSIR K COUZENSIMHIITTLERMR HAWTIN

'MR PERETZ. MR ILETTMR MCINTYRE

Kiss DICKSON (EIP DIV) D/En

DIO CABINET OFFICE

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Copies passed to'Emergency Staff,MOD Sitcen and CinC Fleet)

GRS 330

CONFIDENTIAL

FM WASHINGTON 100010• ApR 82

TO IMMEDIATE FCOTELEGRAM NUMBER 1222 OF 9 APRIL

INFO UKMIS NEW YORK, UKDEL NATO, BOGOTA, BRASILIA, CARACAS, HAVANA,

LA PAZ, LIMA, MONTEVIDEO, pANAmA CITY, QUITO, SANTIAGO, GEORGETOWN,

BRIDGETOWN, KINGSTON, PORT OF SPAIN, mE'XICO CITY, ASUNCION, SANTO

DOMINGO, TEGUCIGALPA, BELMOPAN, SAN JOSE AND NASSAU

MOSCOW TELEGRAM NUMBER 185 (NOT TO ALL): FALKLAND ISLANDS

SOVIET/ARGENTINIAN RELATIONS

I. I WONDER WHETHER wE COULD NOT MAKE SOME PROPAGANDA USE OUT OF THE

BURGEONING ARGENTINE—SOVIET RELATIONSHIP. WE DO NOT HAVE THE FULL

PICTURE HERE OF ARGENTINE SOVIET RELATIONS. BUT I Am AWARE OF THE

FIVE YEAR GRAINS AGREEMENT, SIGNED IN 1981 UNDER WHICH ARGENTINA

HAS UNDERTAKEN A COMMITMENT TO SHIP 4.5 MILLION TONNES OF GRAIN AND

SOYA BEANS A YEAR, AND I BELIEVE THAT THE CURRENT LEVELS OF TRADE

*RE RUNNING MUCH HIGHER THAN THIS, REUTERS TODAY, FOR EXAMPLE, QUOTES

A REpORT THAT 80 PERCENT OF ARGENTINE GRAIN EXPORTS ARE SOLD TO THE

SOVIET uNION. THERE IS AISO THE FIvE YEAR MEAT AGREEMENTS SIGNED

A REpoRT THAT 80 PERCENT OF ARGENTINE GRAIN ExpORTS ARE SOLD To THE

SOVIET UNION, THERE IS ALSO THE FIVE YEAR mEATAGREEmENTS SIGNED

LAST YEAR UNDER WHICH THE SOVIET UNION IS TO IMPORT 60,000 - 100,000

TONNES OF BEEF. THIS TAKES ON THE VERY HIGH LEVEL OF MEAT EXPORTS

REACHED IN 1980 (90,000 TONNES), ANOTHER RECENT REUTERS REPORT

FORECAST THE FORmATION OF TwO JOINT COMPANIES BETWEEN ARGENTINA AND

THE SOVIET UNION TO EXPLOIT THE FISH.STOCKS IN THE SOUTHERN ARGENTINE

SEA, BETwEEN THE FALKLANDS AND THE MAINLAND. OUTSIDE THE AGRICULTU-

RAL SPHERE, I HAvE ALSO SEEN REpORTS RECENTLY OF DEALS BETWEEN THE

ARGENTINE AND THE SOVIET UNION IN ENRICHED URANIUM FOR THE ARGENTINE41• •

NUCLEAR PROGRAMME,

2, ALL THIS SUGGESTS THE DEVELOPmENT OF A CONSIDERABLE DEGREE OF

INTERDEPENDENCE BETwEEN THESE TwO UNLIKELY BEDFELLOWS. I WOULD HAvE

THOUGHT THAT SOME USE mIGHT BE MADE OF THIS TO HELP TO.UsiiiimgarIN

AmERIoANSOLIDARITY BEHIND ARGENTINA IN THE PRESENT CIRCUMSTANCES,

DEFENDING ON LOCAL CIRCUmSTANOES, IT MIGHT ALSO.BE USEFULELSEWHERE.

3,-1JNLESS THERE IS SOMEOBJECTION I PROPOSETO START. USING THIS

LINE WHEN I APPEAR ON ONE OF THE NATION-WIDE TV SHOWS ON mONDAY

MORNING.

HENDERSON